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    July 29, 2008                                                     NCH-08-47

    By the end of this week, and possibly as early as tomorrow, House
    Leadership expects to vote on the "Commodity Markets Transparency and
    Accountability Act of 2008," H.R. 6604, which will impose new rules and
    regulations on energy futures markets. Last Thursday, House Agriculture
    Committee Chairman Collin Peterson (D-MN) held a mark-up of the
    legislation. Chairman Peterson introduced a manager's amendment which
    removed the pensions section from the bill. This section would have
    prohibited pension funds from investing in commodities. The manager's
    amendment was reported out unanimously and now it awaits Speaker
    Nancy Pelosi's (D-CA) decision to bring the bill to the floor. The energy
    speculation legislation is expected to come up under suspension of rules
    which bars amendments and would require a two-thirds vote for passage.
    House Leadership has been bringing legislation to the House Floor under
    suspension of rules, so that Republicans would be unable to attach an off-
    shore drilling amendment to the underlying bill being voted on.

    The legislation is similar to the Senate version, S. 3268, in regards to
    transparency, disaggregation of index funds, studies, hiring new
    employees at the CFTC and recordkeeping requirements. PMAA has
    been working with key committee staff to strengthen the House
    speculation bill. PMAA has clarified that index funds, pension funds and
    others who were hedging against a financial risk not directly tied to the
    underlying commodity will no longer be able to receive a hedge
    exemption. Another provision in Section 8 creates a Position Limit Energy
    Group to set position limits and recommend whether the limits should be
    administered by the Commission or the registered entity. PMAA has been
    pressing the point that physical hedgers should have a dominate presence
    in        the          Position        Limit       Energy          Group.

    Congress needs to hear from you, your employees and your customers.
    Please direct your calls to the House asking for support for H.R. 6604, the
    "Commodity Markets Transparency and Accountability Act of 2008." To
    contact your Representative please call 202.225.3121.
 

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